Fed’s Bullard: Inflation is still too high but it’s moderating

• Fed policy is not yet restrictive but it will be soon with more hikes
• Inflation to moderate in 2023
• Fed action with the prospect of more hikes is helping dampen inflation
• Inflation expectations consistent with Fed’s 2% target
• US GDP likely moderating to potential of around 2%

Bullard is typically hawkish but he’s not this time. The market has taken notice, with the dollar softening and stocks finding a bid.